Disclosure: The opinions and viewpoints expressed in this article are solely those of the author and do not reflect the perspectives of the editorial team.
The Web3 landscape is on the verge of a significant transformation. Some of the industry’s largest and most entrenched players, such as Uniswap and Kraken, are beginning to find that general-purpose blockchains like Base and Solana—which have long served as foundational pillars in decentralized finance—no longer meet their evolving needs. This signifies a swift movement toward custom-built appchains that are poised to usher in a more customized and efficient era of blockchain infrastructure.
The limitations of general-purpose blockchains
General-purpose blockchains played a critical role in the emergence of Web3. Platforms like Ethereum, Solana, and Base acted as a source of liquidity for users and formed the bedrock ecosystems that supported the growth of decentralized applications. These networks facilitated connections among developers and communities, creating the essential network effects needed to kickstart the early innovation phase of Web3.
However, as the industry develops, the inherent limitations of these general-purpose chains have become increasingly apparent. Issues like shared infrastructure, high fees, and inflexible tokenomics often compel larger projects to make sacrifices in terms of performance, cost, or user experience.
A prime example of this shift is Uniswap’s recent introduction of UniChain, a custom Layer 2 solution designed for enhanced efficiency. Likewise, Kraken’s initiative to create an Ethereum Layer 2 Superchain highlights the growing demand for bespoke infrastructure. These organizations have reached such a scale that the advantages of using shared blockchains no longer justify the accompanying costs.
This trend is not unique. As projects gain critical mass, the benefits of controlling their own appchains—specifically tailored blockchains—become too attractive to overlook.
The benefits of appchains
By crafting their own appchain infrastructure, projects can fine-tune their systems for optimal performance, reduce expenses, and better align with their specific requirements.
One of the primary benefits of appchains is improved scalability. Applications on general-purpose blockchains must vie for blockspace and operate under set constraints, leading to congestion and fluctuating fees. Appchains eliminate these challenges by providing projects with a dedicated environment where they can optimize performance, incorporate customized features, and grow without external limitations. For instance, a gaming developer could design an appchain that prioritizes rapid transactions while removing fees that could hinder player engagement, resulting in a smoother and more immersive gaming experience.
Cost-efficiency is another vital aspect. Utilizing shared blockchains often incurs significant gas fees, especially during network congestion. Appchains empower projects to determine their own cost structures, optimizing for throughput while keeping transaction fees low or potentially eliminating them entirely. This is particularly advantageous for platforms that require high-frequency on-chain interactions, such as automated trading systems, NFT marketplaces, or play-to-earn games.
Additionally, appchains are facilitating the entry of Web2 companies into the blockchain arena. Businesses accustomed to controlled and highly optimized infrastructures frequently find general-purpose blockchains too restrictive. In the Web2 world, delivering a seamless user experience is crucial, and companies cannot afford to sacrifice performance for decentralization. Appchains enable these businesses to integrate blockchain technology on their own terms, retaining the flexibility and reliability they depend on. For example, a loyalty rewards program could create an appchain that allows users to effortlessly earn, trade, and redeem points while maintaining the sleek user experience that customers expect. Achieving this would be considerably harder on an overcrowded general-purpose blockchain.
Historically, one significant concern regarding appchains has been the potential for ecosystem fragmentation. Critics warned that developing independent chains would create a divided project landscape, hindering accessibility and liquidity. Nevertheless, progress in interoperability solutions, such as LayerZero and Avalanche’s subnets, has alleviated this worry. Appchains can now seamlessly integrate with broader blockchain ecosystems, allowing assets and data to flow freely between networks. This means projects can enjoy the advantages of a dedicated chain without sacrificing cross-chain connectivity—making appchains a more attractive option than general-purpose blockchains for both emerging startups and established enterprises.
Entering the era of L1 appchains
As more projects embrace the transition to appchains, we will witness the dawn of a new generation of purpose-built blockchains, each tailored to address unique goals and challenges.
Within this appchain evolution, projects will continue pursuing greater control over their infrastructure, communities, and tokenomics, ultimately gravitating toward Layer 1 appchain solutions. Unlike general-purpose blockchains that impose standardized incentive models, appchains allow projects to create custom tokenomic frameworks that are aligned with their long-term objectives. This flexibility enables the alignment of incentives among users, developers, and validators, fostering community loyalty while reducing fragmentation and laying the groundwork for sustainable growth.
Welcoming the appchain movement
The shift from general-purpose blockchains to custom appchains is more than just a passing trend—it’s an inevitable progression, and a beneficial one for the industry. By adopting appchains, projects can achieve a level of scalability, efficiency, and alignment that was previously out of reach.
For builders in the Web3 space, the moment to act is now. Continued reliance on shared infrastructure and general-purpose blockchains could ultimately constrain growth potential, trapping projects within rigid ecosystems and limiting their capabilities. By investing in custom appchain infrastructure today, projects can future-proof their technology stack and position themselves as frontrunners in the forthcoming era of blockchain innovation.